New LPG Export Terminal Planned for Texas

Two significant midstream players - ONEOK and MPLX - have announced plans to jointly construct and operate an LPG terminal on the US Gulf Coast. The terminal is expected to have a 400,000-barrel per day (bpd) capacity fed by a 24-inch pipeline from ONEOK’s storage facility in Mont Belvieu, Texas. 

The joint venture formed by the two companies has been named Texas City Logistics LLC and has 50% joint ownership. ONEOK and MPLX are expected to invest approximately $700 million each for a total project cost of $1.4 billion. Day-to-day operation of the terminal will be under the purview of MPLX. 

The main throughput at the terminal is expected to be primarily low ethane propane (LEP) and normal butane (NC4). 

Commenting on the joint venture and proposed terminal, ONEOK’s president and chief executive officer, Pierce H. Norton II, said: 

“We are excited to collaborate with MPLX on these strategically located projects which expand and extend our NGL value chain providing additional optionality and value to our customers. 

Given our high expectations for future growth and demand for more energy infrastructure, including export capacity, these projects with MPLX complement our disciplined capital allocation strategy”.

MPLX describes itself as a ‘diversified, large-cap master limited partnership that owns and operates midstream energy infrastructure and logistics assets and provides fuel distribution services’. 

ONEOK is considered to be a leading midstream operator that provides gathering, processing, fractionation, transportation, and storage services. 

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